22nd Oct 2014 06:48
LONDON (Alliance News) - Senior PLC on Wednesday said its adjusted pretax profit in the period since July 1 has been in line with its expectations and said it expects its full-year results to meet forecasts, as it reported solid results from across its business units.
The group said its performance in the first nine months of the year and the current level of activity meant it expects adjusted pretax profit to meet expectations. It added it is in a strong position for 2015, though cautioned its results could be impacted by any further currency volatility or any exacerbation of global uncertainty in markets.
The FTSE 250-listed aerospace components company said revenue in its Aerospace arm's large commercial aircraft division was healthy in the period, with an increase in orders by Airbus SAS and Boeing Co boosting its order book, which stands at nearly nine years at current build rates.
It said the future for the unit looks robust, in particular on the back of certification for the Airbus A350 aircraft, which has proceeded to plan with its first customer delivery still anticipated before the end of 2014.
It also said the regional jet, business jet and military markets have performed largely in line with its expectations. It said flight testing for the Bombardier C Series aircraft restarted during the period, and the first customer delivery for the plane is due before the end of 2015. Senior said it has "significant content" involved in the Bombardier jet.
In the division, Senior said the challenges related to industrialising a larger number of commercial aerospace platforms has continued, in particular in its Senior Aerospace SSP business. During the period, consolidation of its Ketema and Capo Industries businesses to a single site was completed, though the re-qualification of the products has taken more time than anticipated, Senior said. As a result, it has increased the provision set up at the end of 2013 for the relocation of the operations by GBP1.7 million.
In its Flexonics arm, it said third-quarter performance was encouraging, driven by healthy demand in the North American heavy-duty diesel engine market, a stronger European automotive market, and a strong performance from its recently-acquired UPECA Technologies Sdn Bhd business in Malaysia.
It added, however, that the positive performance was offset somewhat by subdued demand in European and Brazilian industrial markets, while demand for products in the agricultural and construction equipment maker market slowed towards the end of the period.
Senior also said a fire occurred at its Mexican aerospace facility over the weekend. It said nobody was injured in the fire, and it is insured for the damage. It said the fire is not expected to have a material impact on its results.
By Sam Unsted; [email protected]; @SamUAtAlliance
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